It’s an advertiser’s dream to deliver targeted content via programmatic. And while the industry has certainly made progress, there are significant obstacles to overcome in order to seamlessly integrate programmatic into TV advertising.
Marlene Grimm, analytics manager at TVSquared, is speaking on this very topic tomorrow at dmexco (11:30 a.m.-11:50 a.m. in the Speakers’ Forum). If you’re going to the event, be sure to attend (and say “hi” afterward!); if you’re not, here’s a quick look at her session:
It’s fair to say the TV ad industry is on the cusp of something truly revolutionary in terms of programmatic. However, current hurdles have to be addressed:
- Legislation Concerns: Legislation surrounding the TV ad industry is complex. Each country in which programmatic trading is to be rolled out faces legislative restrictions on the content aired. Privacy is also a concern, as there’s a fine line between accessing anonymous data and data considered to be PII.
- Inventory: The primary mechanism for delivering to “targeted” inventory is via MVPDs. Out of 15 minutes per hour of total ad content, U.S. MVPDs are granted just two minutes to sell directly to advertisers. These timeframes make it difficult enough to trade via programmatic. The lack of inventory is largely due to broadcasters’ fears that they’ll lose content control, as well as substantial amounts of revenue.
- Operational Challenges: The very nature of programmatic is that the whole process – selecting a spot, agreeing on a price and delivering ready-to-air content to the broadcaster – takes place in a matter of milliseconds. With TV, all of these millisecond elements are problematic.
If we can agree on the rules governing programmatic, inform and reassure broadcasters and refine technology, then the programmatic TV dream can become a reality.
In the meantime, TV advertisers can leverage today’s sophisticated analytical technologies to better target customers, measure TV’s impact and optimize campaigns for maximum efficiency. While the programmatic TV “Holy Grail” is some years away, TV is an optimized marketing channel – just like digital – providing advertisers with a broad reach, as well as the precision to target the right customers, in the right places and times for the greatest response.